Head to Head Analysis: DXP Enterprises (DXPE) vs. The Competition

DXP Enterprises (NASDAQ:DXPE) is one of 157 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it compare to its competitors? We will compare DXP Enterprises to related companies based on the strength of its risk, profitability, valuation, analyst recommendations, dividends, institutional ownership and earnings.

Profitability

This table compares DXP Enterprises and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DXP Enterprises	4.45%	18.67%	5.66%
DXP Enterprises Competitors	1.10%	-33.72%	3.55%

Volatility & Risk

DXP Enterprises has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, DXP Enterprises’ competitors have a beta of 1.32, indicating that their average share price is 32% more volatile than the S&P 500.

Insider and Institutional Ownership

74.8% of DXP Enterprises shares are held by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 22.0% of DXP Enterprises shares are held by company insiders. Comparatively, 17.3% of shares of all “Trading Companies & Distributors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares DXP Enterprises and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DXP Enterprises	$2.02 billion	$88.68 million	25.75
DXP Enterprises Competitors	$6.67 billion	$363.16 million	33.55

DXP Enterprises’ competitors have higher revenue and earnings than DXP Enterprises. DXP Enterprises is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for DXP Enterprises and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXP Enterprises	0	2	3	0	2.60
DXP Enterprises Competitors	1469	4921	6741	242	2.43

DXP Enterprises currently has a consensus price target of $183.00, suggesting a potential upside of 18.23%. As a group, “Trading Companies & Distributors” companies have a potential upside of 7.95%. Given DXP Enterprises’ stronger consensus rating and higher possible upside, analysts clearly believe DXP Enterprises is more favorable than its competitors.

Summary

DXP Enterprises beats its competitors on 8 of the 13 factors compared.

About DXP Enterprises

DXP Enterprises, Inc. is a distributor of industrial products and provider of related services. It supplies maintenance, repair and operating products, including bearings, power-transmission components, safety equipment and other industrial supplies to customers in a range of industries. The company also provides pump and rotating-equipment services, such as pump repair and packaged pumping systems, as well as supply-chain services that support customers’ procurement and inventory-management needs.